Employers are increasingly using AI to replace entry-level positions in fields like customer support and basic software development, complicating job prospects for new graduates.

Many graduates, like Jaylah Dorman, who secured a clinical research position, still perceive the job market negatively, prompting some peers to pursue further education instead of entering the workforce.

Graduates from various fields report applying to hundreds of jobs without receiving interviews or offers, leading to widespread feelings of hopelessness.

Economic uncertainty, exacerbated by previous tariff policies and fears of job losses due to AI, has made employers hesitant to hire new graduates.

Looking ahead, the future implications of AI on the job market remain uncertain, with calls for workforce retraining to address potential job displacements.

The tech sector has been particularly affected, with over 130,000 job cuts announced by major companies like Meta, Intel, and Cisco in 2025, further complicating the landscape for new graduates in technical fields.

While tech layoffs and hiring reluctance contribute to the difficulties faced by new graduates, analysis indicates that the rise of AI has not yet significantly impacted their job prospects.

Experts, including those from the New York Federal Reserve, agree that the limited adoption of AI is not the primary cause of the challenges recent graduates are experiencing in the job market.

Recent college graduates are navigating a particularly challenging job market, with many expressing feelings of disheartenment and frustration during their job search.

The unemployment rate for recent graduates has surged to an average of 5.3% in 2025, surpassing the overall labor force rate of around 4%, marking one of the toughest job markets for this demographic since 2015.

Specifically, graduates aged 22 to 27 face an even higher unemployment rate of 5.8%, indicating a significant deterioration in job prospects since March 2024.

Despite a doubling in the number of graduates in computer and information sciences from the 2013-2014 academic year to 2022-2023, employment for software engineers has declined, highlighting a mismatch between graduates and available jobs.